The fuel economy wars are heating up, and we can partially thank (or blame depending on your view point) the U.S. government for increasing fuel efficiency. According to Edmunds, Mercedes Benz is looking to significantly boost fuel efficiency for the turbodiesel variant of its restyled 2014 E-Class luxury sedan.

The outgoing 2013 E350 Bluetec features a 3.0-liter V6 turbodiesel that produces 206 hp and 400 lb-ft of torque. It's enough to give the 4,000-lb sedan EPA ratings of 22 mpg city and 32 mpg highway.

However, the new 2014 E250 Bluetec 4Matic gives up two cylinders and a bit of power and torque to significantly boost highway fuel economy. The 2.1-liter, 4-cylinder turbodiesel engine uses twin sequential turbochargers to generate 195 hp and a still impressive 369 lb-ft of torque, however, highway fuel economy skyrockets to 45 mpg.

2014 Mercedes E-Class

Projected city and combined fuel rating are not available, but we expect those figure to rise sharply as well.

The 45 mpg highway rating makes the E250 Bluetec 4Matic even more fuel efficient than the lighter, less powerful Volkswagen Passat TDI which has an EPA highway rating of 43 mpg. And as its name implies, the E250 Bluetec 4Matic manages that lofty figure with the added heft of an all-wheel-drive system.

Mercedes has yet to announce pricing for the 2014 E250 Bluetec 4Matic, but the 2013 model starts at a $52,200 and lacks AWD.